Value Traps? Top 19 Most Undervalued Stocks Near 52-Week Lows

The following is a list of nineteen stocks that are approaching new lows, i.e. trading 0%-10% above the 52-week low. These stocks are also deeply undervalued when comparing the current price to the average analyst target price (used as a proxy for fair value).

Yes, there are many limitations to this approach of finding undervalued companies, but the goal here is to give a value-oriented investor a starting point for his or her own analysis.

Analysts seem to think these companies are deeply undervalued, what do you think? Is this a list of diamonds in the rough, or a collection of falling knives? Full details below.

Price target data and all other data sourced from Finviz.

List sorted by discount to target price.

1. Allied Irish Banks plc (AIB): Foreign Money Center Banks Industry. Market cap of $1.98B. The stock is currently 6.90% above its 52-week low. The stock's price is currently 46.74% below its target price (current price at $3.10 vs. target price at $5.82). Note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.65). It's been a rough couple of days for the stock as well, losing 12.68% over the last week.

2. Nektar Therapeutics (NASDAQ:NKTR): Biotechnology Industry. Market cap of $1.02B. The stock is currently 5.15% above its 52-week low. The stock's price is currently 43.69% below its target price (current price at $9.01 vs. target price at $16.00). The stock is a short squeeze candidate, with a short float at 8.67% (equivalent to 8.14 days of average volume). The stock has performed poorly over the last month, losing 17.47%.

3. Halozyme Therapeutics, Inc. (NASDAQ:HALO): Biotechnology Industry. Market cap of $666.86M. The stock is currently 5.43% above its 52-week low. The stock's price is currently 43.14% below its target price (current price at $6.42 vs. target price at $11.29). The stock has lost 9.17% over the last year.

4. China Ming Yang Wind Power Group (NYSE:MY): Diversified Machinery Industry. Market cap of $1.16B. The stock is currently 3.37% above its 52-week low. The stock's price is currently 42.26% below its target price (current price at $9.21 vs. target price at $15.95). The stock is currently stuck in a downtrend, trading 5.56% below its SMA20, 8.11% below its SMA50, and 13.24% below its SMA200.

5. PICO Holdings Inc. (NASDAQ:PICO): Accident & Health Insurance Industry. Market cap of $652.63M. The stock is currently 4.05% above its 52-week low. The stock's price is currently 40.88% below its target price (current price at $28.38 vs. target price at $48.00). The stock has lost 19.47% over the last year.

7. Cninsure Inc. (NASDAQ:CISG): Insurance Brokers Industry. Market cap of $731.53M. The stock is currently 0.50% above its 52-week low. The stock's price is currently 40.51% below its target price (current price at $13.98 vs. target price at $23.50). The stock is a short squeeze candidate, with a short float at 14.65% (equivalent to 9.15 days of average volume). It's been a rough couple of days for the stock, losing 9.77% over the last week.

8. E-House (China) Holdings Limited (NYSE:EJ): Property Management Industry. Market cap of $935.15M. The stock is currently 5.85% above its 52-week low. The stock's price is currently 39.66% below its target price (current price at $11.73 vs. target price at $19.44). Note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.03). The stock has performed poorly over the last month, losing 20.59%.

9. EarthLink Inc. (NASDAQ:ELNK): Internet Service Providers Industry. Market cap of $867.36M. The stock is currently 4.91% above its 52-week low. The stock's price is currently 39.21% below its target price (current price at $7.89 vs. target price at $12.98). The stock is a short squeeze candidate, with a short float at 8.95% (equivalent to 5.32 days of average volume).

10. GSI Commerce Inc. (NASDAQ:GSIC): Business Services Industry. Market cap of $1.26B. The stock is currently 0.88% above its 52-week low. The stock's price is currently 38.28% below its target price (current price at $18.43 vs. target price at $29.86). The stock is also a short squeeze candidate, with a short float at 16.82% (equivalent to 8.22 days of average volume).11. Tessera Technologies Inc. (NASDAQ:TSRA): Semiconductor Equipment & Materials Industry. Market cap of $842.16M. The stock is currently 9.16% above its 52-week low. The stock's price is currently 36.38% below its target price (current price at $16.33 vs. target price at $25.67). The stock is currently stuck in a downtrend, trading 5.03% below its SMA20, 14.94% below its SMA50, and 11.44% below its SMA200. The stock has lost 18.44% over the last year. 12. NetSpend Holdings, Inc. (NASDAQ:NTSP): Business Services Industry. Market cap of $979.46M. The stock is currently 2.04% above its 52-week low. The stock's price is currently 35.76% below its target price (current price at $11.03 vs. target price at $17.17). It's been a rough couple of days for the stock, losing 11.06% over the last week.

13. Kinross Gold Corporation (NYSE:KGC): Gold Industry. Market cap of $17.41B. The stock is currently 2.90% above its 52-week low. The stock's price is currently 34.14% below its target price (current price at $15.20 vs. target price at $23.08). The stock has lost 13.56% over the last year.

14. Longtop Financial Technologies Limited (NYSE:LFT): Business Software & Services Industry. Market cap of $1.73B. The stock is currently 5.82% above its 52-week low. The stock's price is currently 33.77% below its target price (current price at $29.55 vs. target price at $44.62). The stock is a short squeeze candidate, with a short float at 14.39% (equivalent to 10.22 days of average volume). The stock has lost 17.71% over the last year.

15. STR Holdings, Inc. (NYSE:STRI): Rubber & Plastics Industry. Market cap of $651.99M. The stock is currently 9.25% above its 52-week low. The stock's price is currently 33.39% below its target price (current price at $16.74 vs. target price at $25.13). PEG ratio at 0.66, and P/FCF ratio at 13.4. The stock is a short squeeze candidate, with a short float at 24.79% (equivalent to 14.89 days of average volume). The stock has performed poorly over the last month, losing 18.13%.

16. Valassis Communications Inc. (NYSE:VCI): Marketing Services Industry. Market cap of $1.42B. The stock is currently 4.12% above its 52-week low. The stock's price is currently 33.33% below its target price (current price at $28.00 vs. target price at $42.00). Note that this is a risky stock that is significantly more volatile than the overall market (beta = 3.24). The stock has performed poorly over the last month, losing 13.62%.

18. Empresas ICA, S.A.B. de C.V. (NYSE:ICA): Heavy Construction Industry. Market cap of $1.42B. The stock is currently 3.42% above its 52-week low. The stock's price is currently 32.20% below its target price (current price at $8.78 vs. target price at $12.95). The stock has performed poorly over the last month, losing 13.91%.

19. Randgold Resources Ltd. (NASDAQ:GOLD): Gold Industry. Market cap of $6.70B. The stock is currently 3.25% above its 52-week low. The stock's price is currently 31.17% below its target price (current price at $73.34 vs. target price at $106.56). It's been a rough couple of days for the stock, losing 8.51% over the last week.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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